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Source of auto-entry in Qualified Business Income Deduction Summary?

Forum|Forum|4 years ago
April 11, 2022
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We have some Non-employee Compensation, reported on a 1099-NEC, which triggered the use of the Qualified Business Income Deduction worksheet and summary. On the Summary form (QBI Ded Summary), there is an entry on line 9, Total REIT dividends. We have, however, no REIT investments. When I right-click on the entry and then Data Source, it opens a pop-up that lists three types of Sch K-1 Worksheets (Partnerships, S Corporations, and Estates and Trusts) as the source. There are, however, no Sch K-1 Worksheets in in use in my return. I looked at my Carryover Wks, but found nothing there. I'm at a loss as to how to track this down.

Any idea what might be the source of this REIT Dividends entry or how I could track down the source of this one data point?

Deduction

Best answer by JulieS

I am not sure why this is not listed as a data source, but box 5 of 1099-DIV goes to line 9 on the QBI deduction worksheet also.

J

JulieSAnswer

I am not sure why this is not listed as a data source, but box 5 of 1099-DIV goes to line 9 on the QBI deduction worksheet also.

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J

Jacks-sonAuthor

Wow, spot on! Thank you, JulieS!

I checked Box 5 of my 1099-DIV and the number matches the value on line 9 of the QBI Deduction Summary form. Apparently, a mutual fund I own has shares of has some domestic REITs in its portfolio.

Knowing what was going on, I checked form 8995 where REIT dividends are entered on line 6 and in a Smart Worksheet. Again, neither makes any reference to Box 5 of the 1099-DIV. I would have remained unaware of Section 199A dividends and how they impact the QBI deduction w/o your help. Again, THANKS!